A Home Buying Frenzy in Las Vegas (Henderson: for sale, real estate)

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Like many cities, it is hard to find good homes for sale in good neighborhoods in today's Vegas. At the same time, the median price of a home is still a remarkably affordable $161,000, still almost 50 percent below prices in 2006.

I don't doubt that home prices have increased in many cities, yet in some Vegas areas, they have increased over 30% in the past year. How many other cities have experienced a similar leap in median home prices? My family bought our Henderson home two years ago for $201,000. A year ago, we could have probably sold it for even money. Now, I have realtors telling me we may be able to get $300,000 for it. It's baffling to me, and I find it hard to believe that such a level of housing inflation could be common throughout the country, even in other places where housing prices tanked such as Detroit.

Who is buying at 30% premium today compared from 1 year ago?
Whose income went up 30% in past 12 months?
Whose income went up 5% in past 12 months?

According to your article;
"In March 57.5 percent of existing homes sold in the area were purchased with cash."

So we have speculators diving in and desperately looking for yields?
Then you have monkey see - monkey do small time speculators who are jumping in and paying premiums today.
Home ownership is down across the country, going back to 1995.

"The number of households owning homes fell 698,000 to 74,511,000 in the first quarter, the first decline in almost two years, according to a Census Bureau report last Tuesday.
At the same time, the nation’s homeownership rate fell to 65 percent (seasonally adjusted), the lowest level since the fourth quarter of 1995.

The Census Bureau also reported the homeowner vacancy rate rose to 2.1 percent in the first quarter from 1.9 percent in the fourth quarter. The homeowner vacancy rate is the proportion of the homeowner inventory that is vacant for sale.

The Census data paints a grim picture for the home sales market, which has already been struggling against mortgage restrictions and weak inventory. The Census report suggests homeownership may have lost its place in the “American dream” as a new generation of potential homebuyers may have become wary of homeownership as a result of the wave of foreclosures in the last several years."

Look at Zillow, currently there are 9700 foreclosed and in pre-foreclosure homes in pre-market held off by the banks to create the illusion of inventory shortage.
Las Vegas valley is full of non-performing loans and people who don't pay their mortgages for years.
What about the PMI rule now that you have to pay for life of the FHA loan?
What about hidden homeownership costs no one talks about?

If you pay anything over $80 per sq in Las Vegas you are a not smart.
$80 should be a limit, ideally it should be much lower.

I don't doubt that home prices have increased in many cities, yet in some Vegas areas, they have increased over 30% in the past year. How many other cities have experienced a similar leap in median home prices? My family bought our Henderson home two years ago for $201,000. A year ago, we could have probably sold it for even money. Now, I have realtors telling me we may be able to get $300,000 for it. It's baffling to me, and I find it hard to believe that such a level of housing inflation could be common throughout the country, even in other places where housing prices tanked such as Detroit.

IMHO, to pay $300.000 and end up living in Las Vegas is a true example of INSANITY.[mod cut--rude]

Bubble. Pop. More bubble. Pop. Rinse. Repeat. Recycle. Try not to drown in the bath water.

Through it all, the only people making the money are the bankers and the brokers and real estate agents and Home Depot.

Of course, this happens everywhere but especially in Las Vegas. The land of shysters, scammers and people of ill repute.

Truer words were never spoken!

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